Blog /

May 2025 GDP: The economy is still swimming.

Real gross domestic product dropped 0.1% in May, but the worse from the trade war might be behind us.

Author's image
Andrew DiCapua

Manufacturing rose 0.7% on the month following a record contraction in April, led by durable goods. This was largely due to a build up in inventories for businesses in aerospace and fabricated metals and we expect this to be temporary. Manufacturing GDP for the first five month of the year is trending below 2024 levels.  

Transportation and warehousing grew 0.6% in May, following declines in April from decreases activity due to tariffs. Rail volumes rebounded from April and pipeline flows for both crude oil and natural gas are continuing growth

Retail trade contracted 1.2% led by lower sales of motor vehicles and parts, followed by food and beverage and gasoline sales. Vehicle sales remain above 2024 levels despite a downward trend in recent months. On a positive note, arts, entertainment and recreation grew 0.2% in May driven by two Canadian teams competing in the Stanley Cup Playoff finals.

logo

Stay Connected

Get the Latest Insights Delivered to Your Inbox!